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Garuda Indonesia cancels its Boeing 737 MAX 8 orders

Jakarta - Garuda Indonesia has sent a letter to Boeing requesting to cancel the remaining 49 737 MAX 8 from an order package for 50 aircraft one of which has already been delivered.

With this decision, Garuda became the first airline to cancel an order from the Boeing's troubled 737 MAX program due to recent fatal crashes.

The airline CEO Ari Askhara said that passengers had lost trust in the 737 MAX jets.

The Indonesian flag carrier is in talks with Boeing to convert its existing order of $6 billion to another Boeing model. An Airbus model is not currently under consideration Fuad Rizal, Chief Financial Officer of the airline told Reuters news agency.

Another Indonesian carrier Lion Air also considers canceling its orders for the aircraft since one of its 737 MAX 8 jets crashed into the Java Sea just after takeoff last year in October.

Lion Air has 186 737 MAX jets (both -8 and -9 variants) in its order book with Boeing.

In addition to Garuda and Lion Air, VietJet, UTair and Aeroflot are among the airlines thinking to review their Boeing 737 MAX orders after another deadly crash in Ethiopia on March 10.

"Some airlines consider cancelling their Boeing 737 MAX orders"



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